Gen Digital (NASDAQ:GEN) Releases Q2 2027 Earnings Guidance

Gen Digital (NASDAQ:GEN) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.710-0.730 for the period, compared to the consensus EPS estimate of 0.700. The company issued revenue guidance of $1.3 billion-$1.4 billion, compared to the consensus revenue estimate of $1.3 billion. Gen Digital also updated its FY 2027 guidance to 2.870-2.970 EPS.

Gen Digital Stock Up 3.8%

Shares of NASDAQ:GEN opened at $29.17 on Friday. The company has a debt-to-equity ratio of 3.07, a quick ratio of 0.40 and a current ratio of 0.40. Gen Digital has a 1 year low of $17.78 and a 1 year high of $32.22. The stock has a market capitalization of $17.46 billion, a P/E ratio of 16.96 and a beta of 1.21. The stock has a 50-day simple moving average of $25.96 and a 200-day simple moving average of $23.33.

Gen Digital (NASDAQ:GEN) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.71 EPS for the quarter, beating the consensus estimate of $0.69 by $0.02. The firm had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. Gen Digital had a net margin of 20.73% and a return on equity of 57.01%. Gen Digital’s revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.64 earnings per share. Gen Digital has set its FY 2027 guidance at 2.870-2.970 EPS and its Q2 2027 guidance at 0.710-0.730 EPS. Equities analysts forecast that Gen Digital will post 2.61 earnings per share for the current year.

Gen Digital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 17th will be issued a dividend of $0.125 per share. The ex-dividend date is Monday, August 17th. This represents a $0.50 annualized dividend and a dividend yield of 1.7%. Gen Digital’s payout ratio is presently 31.65%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on GEN shares. Wall Street Zen raised shares of Gen Digital from a “hold” rating to a “buy” rating in a research report on Saturday. Weiss Ratings upgraded Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 15th. Barclays upped their target price on Gen Digital from $27.00 to $32.00 and gave the stock an “equal weight” rating in a research report on Friday. Jefferies Financial Group lowered Gen Digital from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Finally, Royal Bank Of Canada boosted their price target on Gen Digital from $27.00 to $30.00 and gave the stock a “sector perform” rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Gen Digital presently has a consensus rating of “Hold” and a consensus price target of $31.67.

Insider Transactions at Gen Digital

In other Gen Digital news, Director Ondrej Vlcek sold 100,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $24.78, for a total transaction of $2,478,000.00. Following the completion of the sale, the director owned 3,832,724 shares in the company, valued at $94,974,900.72. This trade represents a 2.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John C. Chrystal acquired 3,000 shares of the company’s stock in a transaction on Thursday, June 4th. The shares were acquired at an average price of $27.06 per share, for a total transaction of $81,180.00. Following the completion of the acquisition, the director directly owned 31,419 shares in the company, valued at $850,198.14. The trade was a 10.56% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 9.70% of the company’s stock.

Gen Digital News Roundup

Here are the key news stories impacting Gen Digital this week:

• Positive Sentiment: Quarterly results exceeded expectations. Gen Digital reported fiscal Q1 2027 adjusted EPS of $0.71, versus the $0.69 consensus estimate, while revenue increased 6.3% year over year to $1.34 billion, topping expectations of $1.31 billion. EPS also improved from $0.64 a year earlier. Gen Digital quarterly earnings report
• Positive Sentiment: Management raised fiscal 2027 targets. Gen Digital now expects full-year EPS of $2.87 to $2.97 and revenue of $5.4 billion to $5.5 billion, above analyst consensus of $2.83 EPS and approximately $5.4 billion in revenue. Second-quarter EPS guidance of $0.71 to $0.73 also exceeds the $0.70 consensus estimate. Reuters report on Gen Digital’s raised forecast
• Positive Sentiment: Cybersecurity demand remains supportive. The company cited strong demand for its family of digital-security products, double-digit bookings growth and increasing online threats powered by artificial intelligence. These trends support recurring revenue and Gen Digital’s growth outlook. Gen Digital fiscal Q1 2027 results release
• Positive Sentiment: Barclays raised its price target from $27 to $32 while maintaining an Equal Weight rating, suggesting additional potential upside based on the firm’s updated valuation. Benzinga analyst update
• Neutral Sentiment: Gen Digital declared a quarterly dividend of $0.125 per share. Investors of record on August 17 will receive payment on September 9. The dividend provides ongoing shareholder income, although the 1.7% yield is unlikely to be the primary catalyst for the stock.
• Negative Sentiment: Wells Fargo raised its price target from $22 to $28 but retained an Equal Weight rating. The new target remains below the stock’s current trading level, signaling valuation caution despite the improved earnings outlook. Benzinga analyst update

Institutional Trading of Gen Digital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Geneos Wealth Management Inc. raised its holdings in Gen Digital by 221.5% in the first quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock valued at $46,000 after acquiring an additional 1,183 shares in the last quarter. MUFG Securities EMEA plc bought a new stake in shares of Gen Digital in the 2nd quarter worth about $47,000. Brown Brothers Harriman & Co. increased its position in shares of Gen Digital by 47.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company’s stock worth $50,000 after purchasing an additional 568 shares during the last quarter. Larson Financial Group LLC raised its stake in shares of Gen Digital by 20.9% in the 3rd quarter. Larson Financial Group LLC now owns 2,255 shares of the company’s stock valued at $64,000 after purchasing an additional 390 shares in the last quarter. Finally, Quarry LP bought a new position in shares of Gen Digital during the fourth quarter worth about $90,000. Institutional investors own 81.38% of the company’s stock.

About Gen Digital

Gen Digital (NASDAQ: GEN) is a global cybersecurity company specializing in consumer- and small-business-focused security, privacy, and identity protection solutions. The company offers a suite of products designed to safeguard devices, networks, and personal information against malware, ransomware, phishing attacks and other digital threats. With a focus on user-friendly interfaces and cross-platform compatibility, Gen Digital develops antivirus software, VPN services, parental controls, password management tools, and comprehensive identity-theft monitoring services.

Gen Digital traces its origins to the consumer software division of Symantec Corporation, which was spun off in late 2019 under the NortonLifeLock name.